Singapore fund favours Hong Kong property assets for now

Recently I shared something I read about Hong Kong’s property market. It’s not doing well actually. Read here: Hong Kong property market? Dropping in price and transactions Well, as they say value appears once prices have dropped low enough to re-enter the market. SC Capital Partners, a Singapore private equity real estate firm said that Hong Kong’s recent price declines have made Hong Kong property attractive versus Singapore’s own property market. It’s founder Suchad Chiaranussati said he expects current cooling measures by the Singapore government to continue until end of 2017. Thus, Hong Kong offers more value with current declines.

He added, “The big correction in prices has already happened in Hong Kong” According to data compiled by Centaline Property Agency Ltd, Hong Kong housing prices have dropped about 13 per cent from a peak in September 2015. The reasons include a rising supply of homes, higher short-term interest rates and slowing growth in China. SC Capital’s views are not shared by Kyle Bass, the hedge-fund manager who told told a Las Vegas conference that Hong Kong’s property market is in “free fall.” (Briefly, free fall means there’s no certainty when the decline would stop). Goldman Sachs Group Inc. also predicted a 20 per cent decline in home prices. The full article is here.

To those who believe SC Capital’s predictions, well, Hong Kong property prices are still extremely expensive. Take a look at some latest prices in the image. Look at the size and the actual price. These are in New Territories. They are definitely cheaper than those usual areas we hear in Hong Kong TVB dramas. Perhaps even Australia or London is a cheaper alternative? Happy following.